BFT: Will the tulip craze ever break down? Message Board

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Strategies & Market Trends : BFT: Will the tulip craze ever break down?

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To: dealmakr who wrote (31)	3/11/1998 3:42:00 PM
From: Pancho Villa	of 650

Mr Hillman why do you need to mislead investors by creating the most weird ratio I have ever seen! Debt-to-Market Capitalization Ratio! Wow! The one I learnt at school is called Debt/Equity ratio This ratio in your Q3 97 10Q is close to 10X! Do you think this is a bit high? However in a November press release you said: AN INTERESTING PRESS RELEASE SHOWING MANAGEMENT IS LYING ON THEIR FINANCIAL SITUATION: CREATION OF A NEW RATIO! [sorry folks Yahoo took away the link. I did cut and pastethe quote bellow from it a few days and months ago. Will look for it somewhere else!] biz.yahoo.com "The company in August raised about $90 million in an eight million share common stock offering, which helped to reduce its total debt-to-market equity ratio to about one-to-one [what a big lie!], Hillman said." You read this and then you think Pancho was lying to you when he told you that the debt equity ratio was almost 10X. Well, Mr. Hillman just invented a new ratio! debt to Market capitalization! a rare mix of accounting standards based on historical values with the current market value of the equity (also, I believe they used long term debt only and not total debt as they say in the release). I wonder if they will still use this version of the ratio once the stock price falls to under 5 bucks. IMO, this is the type of deceiving tactics companies have to use when they have nothing of value to promise stockholders!

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